The Intuitive Lowest Cost Method Or The Minimum Cell Cost Method The Intuitive Lowest Cost Method is a cost based approach to finding an initial solution to a transportation problem. It makes allocations starting with the lowest shipping costs and moving in ascending order to satisfy the demands and supplies of all sources and destinations. This straightforward approach uses the following steps. Identify the cell with the lowest cost. Allocate as many units as possible to that cell without exceeding the supply or demand. Then cross out the row or column or both that is exhausted by the above assignment. Move on to the next lowest cost cell and allocate the remaining units. Repeat the above steps as long as all the demands and supplies are not satisfied. When we use the Intuitive Approach to the Bengal Plumbing problem, we obtain the solution as below. Transportation Matrix for Bengal Plumbing From \ To Warehouse E Warehouse F War...
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